Glossary

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Term Definition Legal instruments

ancillary risk

01/01/2016

THIS DEFINITION ONLY APPLIES TO THE INSURANCE GENERAL APPLICATION PART

(1) subject to (2), means (in relation to an insurer with Part 4A permission to insure a principal risk belonging to one class of general insurance business) a risk included in another such class which is:

(a) connected with the principal risk,

(b) concerned with the object which is covered against the principal risk, and

(c) the subject of the same contract insuring the principal risk.

(2) the risks included in classes 14, 15 and 17 may not be treated as risks ancillary to other classes, except that the risk included in class 17 may be regarded as an ancillary risk of class 18 where:

(a) the conditions laid down in (1)(a) to (1)(c) are fulfilled, and

(b) the principal risk relates solely to assistance provided for persons who fall into difficulties while travelling, while away from home or while away from their permanent residence or where it concerns disputes or risks arising out of, or in connection with, the use of sea going vessels.

Additional Notes

[Note: Art. 16 of the Solvency II Directive]